Floundering mortage firm cancels lavish retreat 
Countrywide Financial, the nation's largest mortgage company, is already in trouble over the mortgage meltdown. Now the New York Times is reporting that Countrywide has had to cancel a lavish conference it had scheduled for 30 lenders from the smaller banks with which it deals.
The annual event had come under scrutiny from CBS News, in a segment broadcast on Monday's Early Show. "It's a winter retreat for the rich," explained CBS's Jeff Glor. "The Bachelor Gulch Ritz-Carlton Resort in Avon, Colorado. Rooms start at $725 a night. The mountains are snow-capped, the skiing top-notch. And then there's the food."
The retreat also drew sharp criticism from Sen. Chuck Schumer (D-NY), who told CBS, "Of all the acts of corporate stupidity, this takes the cake. ... Countrywide is too cash-strapped to prevent layoffs, refinance borrowers, or ward off bankruptcy ... but it can afford a junket for its fellow travelers from the subprime mess? This brings new meaning to 'snow job.'"
Countrywide reported a $422 million loss for the fourth quarter and agreed last month to be acquired by the Bank of America. It has foreclosed on 90,000 mortgages and has laid off 19% of its workforce.
Schumer called on Countrywide to cancel the event and use the money to help troubled home buyers. Countrywide did not return CBS's phone calls and originally showed every intention of going ahead with the retreat. However, a statement issued on Sunday announced the cancellation of the gathering "in light of recent events."
This video is from CBS's Early Show, broadcast February 25, 2008.
 
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